spinning fire

Photo: Megan via Flickr

Whew! Be glad it’s the weekendBut first, the scoreboard:

Dow: +70.09
NASDAQ: +1.62
S&P 500: +2.45

And now the top stories:

  • Where to begin… Both China and India fell pretty hard, reversing themselves after what was a pretty good week. Just after 5:00 AM ET, China hiked its reserve ratio requirement by another 50 basis points. The effect was fairly muted on most markets.
  • In Europe, you have a situation where periphery spreads are blowing out (especially Portugal!) and the euro is surging. The missing link may be bank liquidity issues — ECB borrowing has spiked again recently — implying a scarcity for euros. Peripheral European markets fell again, though that’s not really where the action is.
  • The geopolitical situation gets even more hectic. There were reports of major Libyan cities falling out of the hands of the government. In Bahrain the protests turned bloody. There’s even the seeds of an uprising in Djibouti. Most surprising, though, were fears expressed by the Saudis that the revolution could spread there. The net effect of all this on markets? Nada.
  • There wasn’t much economic data in the US. Silver shot the moon. Gold did a fair job of keeping up, but couldn’t quite. Oil finally caught a bit, the dollar got crushed, and the euro surged. One big story of the day was the cotton crash. The cotton ETN fell over 11%, as actual cotton futures closed limit down. All over the world there are signs of the air coming out of the soft ags bubble… from soy to palm oil to Indian onions.
  • In terms of market internals, an observation made by Doug Kass is that some big market leaders like Netflix and Apple are underperforming.
  • Right now the dominant thinking is that this market just HAS to stop rallying soon. But people have thought that for a while.
  • Click here for 13 signs that we’re in a new bubble >

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